Today’s Japanese Stock Market Strategy
Strategies
- Buy Banks
- Semiconductor Stocks
Explanation
There are no specific trades planned, but if forced to choose, buying banks seems promising. The potential rise in interest rates and improved supply-demand conditions in US banks could lead to a short-term increase in Japanese banks. Stocks like Kyushu FG, which has been continuously hitting 52-week highs, and large-cap SMFG, are attractive for buying. It’s advisable to engage in day trading, with the intention to hold only if the stock shows an upward trend.
The second strategy involves semiconductor stocks, but it does not specify whether to buy or sell. Due to the decline in NVDA, many Japanese semiconductor stocks are expected to open at lower prices. Large-cap semiconductor stocks might continue to decline or maintain lower prices. On the other hand, medium-cap semiconductor stocks have high demand, so buying interest is likely to increase when their prices drop. Stocks like Tokyo Electron Devices, Rorze, Tri Chemical, and TOWA could be good options.
Review of Today’s Japanese Stock Market
Prominent Movers
- Medium-Cap Semiconductor Stocks
- Keisei Electric Railway
- GMOPG
Explanation
Physical stocks initially seemed to open at lower prices overall, but many medium-cap semiconductor stocks opened higher. Stocks like Rorze, Tri Chemical, and Japan Electron opened higher and continued to rise. Large-cap semiconductor stocks opened lower as expected but surpassed the previous day’s closing prices. Intraday, there was positive news for Socionext, contributing to the ongoing positive sentiment in medium-cap semiconductor stocks.
Railway stocks, which had been declining recently, rebounded. Positive news related to Keisei Electric Railway and OLC contributed to the positive market sentiment.
On the other hand, large-cap IT stocks notably declined today. GMOPG experienced a decline exceeding 5%, with no specific reason identified. Despite the strong performance of small-cap high-tech stocks, it’s apparent that investing in high-tech stocks as a whole does not guarantee profits. Regarding the first strategy of buying bank stocks, the perspective was correct, but the market movements were not as favorable as anticipated.
Conclusion
Medium-cap semiconductor stocks have strong demand, making them attractive for buying when their prices drop. As long as they do not show significant declines and remain stable, buying into these stocks seems promising.
